Disappointing earnings and weaker-than-expected housing data didn't stop the S&P 500 from setting a third closing high today. Meanwhile, the National Association of Realtors reported that existing home sales slipped 1.2% in June to an annual rate of 5.08 million. Expectations had been for a rate of 5.25 million units. Nevertheless, the report was the second best since November 2009.
The start of the week was not an auspicious one from an earnings standpoint with some troubling misses on estimates. Most notable was McDonald's (MCD) which fell over 2.5% after reporting earnings of $1.38 a share when expectations were for $1.40. Revenue also missed at $7.08 billion when consensus was for $7.094 billion. The company is citing economic uncertainly around the world for a decrease in opportunities. The chain is trying to counteract the trend by focusing on its Dollar Menu. For the quarter just ending, same-store sales ticked higher, but margins shrank.
Hasbro (HAS) also missed estimates on bothRead More »from S&P 500 Sets New High Despite Disappointing Earnings